The Federal Reserve is actively studying the central bank’s digital currency, and some prototypes are nearing completion. The Federal Reserve Bank of Boston and the Massachusetts Institute of Technology (MIT) plan to launch two prototype digital dollars as early as July.
Digital dollar prototype is coming soon
Federal Reserve Chairman Jerome Powell (Jerome Powell) said last week that the U.S. Central Bank is actively exploring the issuance of digital dollars as part of the Bank for International Settlements (BIS) activities related to central bank digital innovation.
The Federal Reserve has been actively developing Central Bank Digital Currency (CBDC). At least two digital dollar prototypes developed by officials from the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology (MIT) are nearing completion. James Cunha, project leader at the Boston Fed, said they plan to publish their research as early as July. He told Bloomberg:
The Federal Reserve Bank of Boston and the Massachusetts Institute of Technology hope to announce some of their work in the third quarter, including at least two prototype software platforms that can move, store, and settle transactions in digital currencies.
Cunha explained that once the prototype is released, others will be able to see and build on that code.
Kuna explained that the central bank, the Ministry of Finance and Congress must resolve major issues related to the digital dollar. These include whether the Fed should host customer accounts on its own, whether it allows anonymity, and what protection consumers will receive in the event of cyberattacks or erroneous transactions. He added that the Fed’s work aims to show possible actions without taking a stand on these major issues.
To quote Cunha: “We think it is important that we do not wait for policy debates, because then we will be behind by about a year.” “This will have a significant impact on the industry and cause serious debate.”
Fed Chairman Powell stated that the central bank will fully adopt figures only in dollars and support the country’s elected leaders. He stated in February that digital currencies are a “very priority project” for the Federal Reserve. Powell emphasized last week: “We need the support of Congress, the government, and the general public.”
Without the support of Congress, we will not continue to do this. I think it will ideally appear in the form of authorizing laws instead of trying to interpret our laws to achieve this goal.
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